Sison vs. Board of Accountancy

G.R. No. L-2529

Facts:

The Board of Accountancy issued a CPA certificate to a British national named Robert Orr Ferguson to practice his profession in the Philippines without examination.  The issuance of the said certificate was questioned by herein petitioner on the ground that there is no reciprocity between the Philippines and the United Kingdom as regards the practice of accountancy.

To resolve this matter, the Board of Accountancy suspended the validity of the CPA certificates until it can be proven that (a) Filipinos are allowed to take the professional accountant examination given by the British government, if any, and (b) Filipino certified public accountants can, upon application, be registered as chartered accountants or granted similar degrees by the British Government." This resolution is based on the findings that there is no law which regulates the practice of accountancy in England.  However, the Philippine Accountancy Law explicitly provides that the suspension or revocation of the certificate issued under the said Act may be done by the board for unprofessional conduct of the holder or other sufficient cause. The Secretary of Justice further said that he believes that "the change in administrative interpretation with respect to the existence of reciprocity between the Philippines and Great Britain as to the practice of accountancy," does not constitute sufficient cause for the suspension or revocation of the certificates in question within the meaning of said provision.

Issue:

W/N the issuance of the CPA certificates was valid in the absence of reciprocity between the Philippines and the British Government?

Ruling:

Yes it is valid as it comes within the realm of comity as contemplated in our law.  Comity is defined as the recognition which one nation allows within its territory the acts of foreign governments and tribunals, having due regard both to the international duty and convenience and the rights of its own citizens or of other persons who are under the protection of its laws.

The British minister in a note sent to the President of the Philippines wrote that that qualified Philippine citizen are allowed to practice the profession of accountancy including income tax accounting, in the United Kingdom since there is no governmental control of the accounting profession in the said country and any resident of the United Kingdom, of whatever nationality, may engage in the profession of accounting without formality.

Therefore, the SC finds no reason why Robert Orr Ferguson who had previously been registered as certified public accountants and issued the corresponding certificate public accountant in the Philippine Islands, should be suspended from the practice of his profession in these Islands.